Gold loan company Muthoot Finance said on Monday it has submitted an application to RBI for a licence to start a bank.

"The application for a banking licence is indeed a major milestone for the Muthoot Group. With our last mile connect in to the rural hinterland, a banking license will enable us to play a larger role of financial inclusion by taking these services to the unbanked and underserved population of the country," George Alexander Muthoot MD, Muthoot Finance said in a statement.

Kerala-based Muthoot Finance has 4200 branches in 21

states and four union territories. Around 60 per cent of this network is across Tier II, III and IV cities, it said.

Muthoot Finance Recently received in-principle approval from RBI to set up White Label ATMs. The company has already chalked out setting up 1,000 such ATMs in the first year and another 8,000 in the next two years.

"Many of our branches in Tier II,III and IV cities can be immediately converted in to a full-fledged bank.

"Our reach of 4200 branches, large existing customer base and the strong brand image makes us an eligible candidate for a Bank in the country," George Alexander Muthoot said.